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Sport sports betting industry wants to safeguard itself

16 September 2010
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By Bill Wilson

Business reporter, BBC News

sports betting on sport is huge company.

Sport England approximates the value of costs on sport-related gaming in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

Which figure is most likely to have grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer.

Meanwhile, German research study company Sport & Markt approximates the total international gaming market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting.

But when the stability of occasions are struck the gaming industry suffers, and incomes are put under hazard if consumers can not wager with self-confidence.

And there can have been couple of higher-profile sport wagering stories than those affecting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone speak about the sports betting gambling market now.

"Not just is it a considerable market in world business, it is one that is now on the front pages of papers."

Four Pakistan cricketers have been questioned by police over spot-fixing allegations relating to a test against England at Lord's last month.
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Three of these players have actually said they will likewise challenge the corruption charges installed versus the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champ John Higgins was cleared of match-fixing allegations, but was prohibited recently for six months for stopping working to report the illegal technique to him to toss frames.

There are likewise 2 other continuing examinations - unrelated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's greatest online sporting exchanges.

"If the sport is viewed as truthful, straight and fair that benefits sports betting companies because people will invest money sports betting with self-confidence," he states.

"If you take the Pakistan allegations, although unrelated to the UK controlled wagering industry ... it is not really a favorable story for wagering in the UK.

"That is since the perception is that 'cricket is now something we might have to be mindful about'."
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'Education'

So what can be done to prevent future scandals?

According to specialists at a World sports betting Law Report conference into sports betting, the focus needs to be on sportsmen and sportswomen.

As Simon Taylor of the Professional Players' Federation points out: "The only individuals who can repair a match are the rivals or the referee."

His organisation represents males and females in 15 sports betting in the UK, being an umbrella organisation for all gamer organisations, such as the Professional Footballers' Association.

He thinks that it is inadequate to simply have deterrents, sanctions and disciplinary procedures, but that the method to take on potential concerns around players is also through education.

Mr Taylor states rules require to be explained plainly to players with clear examples, and by people they appreciate.

"Through educating gamers about sports betting wagering you reinforce stability and that remains in everyone's interest," he adds.

"If players are harder to corrupt then sport will be more difficult to corrupt."

'Brand damage'

Matt Johnson, head of regulative legal guidance at the Football Association, agrees.

"Prevention is better than treatment, and we also make a point of informing gamers 'you are going to be caught'."

"It is important that sport is straight, and is seen to be directly," he adds.

"If it loses that then people do not wish to wager, that is not in sports betting firms' interests, and it is not in our interests."

He said that when a good track record was lost, the damage to a sport was "enormous".

FA guidelines mean gamers are not enabled to bank on a competition in which they are involved.

Mr Johnson says players have to be seen not to be capitalizing any inside understanding, which he says might trigger "brand damage" to football and its competitors.

So, even a 2nd Division player knocked out of the FA Cup in the autumn can not bank on a Manchester United v Chelsea cup final the following spring.

"We have to overcome to players the reputational threat to the game," he states. "Once confidence has been harmed it is hard to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, then perhaps Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to manage commercial gambling in Great Britain.

An ex-chief constable of West Midlands police, Mr Tofiluk has for policing all wagering in the UK apart from spread betting, which is the remit of the FSA.

"The overwhelming majority of sports betting wagering taking location through UK operators is legal and reasonable," he states.

"But for some there is the temptation to ... corruptly interfere with the result of a sporting event.

"Such cheating has the prospective to undermine the integrity of a sport, and it also hurts the industrial interests of sports betting bodies and sports betting."

The commission has developed an in-house Sports Betting Intelligence Unit to receive and share details to sporting authorities, betting companies and policing authorities.

"Since 2007 we have actually experienced a significant insight into world of corrupt sports betting," he says.

"We will inform sports betting of our concerns, to help avoid or reduce [illegal] activity"

In May 2010, the commission also presented a confidential telephone hotline for those with details or suspicions.

'Vulnerabilities'

But in a two-and-a-half year period there has actually been just one prosecution, a 24-year-old man who was warned for unfaithful in relation to greyhound racing.

However, Mr Tofiluk says there are still 8 ongoing investigations, and that much beneficial info has likewise been passed to sports betting authorities.

He stated that where an examination by a sport governing body was quicker, and more cost effective, then the commission would consider stopping a criminal examination "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says much of those aiming to cheat the sports betting wagering market were well-informed about sports betting and sporting individuals, and about wagering operations and the movement of money.
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"They look for the vulnerabilities of these to assist in their business."

Related web links

World sports betting Law Report

ICC

Professional Players Federation

Professional Footballers' Association

The FA

Betfair

Sport & Markt

BLP

Gambling Commission